Quality Funds Have Been Buying Microsoft Shares

And when the increase includes top funds, an investor needs to ask: Is this stock a buy?

Microsoft (NASDAQ:MSFT) might seem like an unlikely candidate to fulfill both of the above requirements. For the fast money crowd, Microsoft is often regarded as a has-been: a once-great growth story turned stale.

Yet from Q4 to Q1, funds' stake in Microsoft rose about 2% — not insignificant when you consider the overall stake is about 3.2 billion shares. Quality funds opening or adding to their positions in Q1 included Janus Contrarian Fund , which put 3.5% of its portfolio into the stock, and Fidelity Contrafund , which increased its stake by a third.

Overall, 70 funds rated A+ by IBD either opened, increased or held steady their positions while 18 A+ funds lightened their stake and two exited the stock entirely.

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03/30/2015 05:54 PM ET

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